HAMBURG: European wheat markets were little changed in light trade on Wednesday, stabilising after falls on Tuesday, as dealers awaited Friday's release of a key US government crop report.
* Europe's benchmark wheat, Paris' May contract, was unchanged at 209.00 euros a tonne in a volume of 1,588 lots by 1222 GMT.
* Paris front-month March was down 0.75 euros or 0.3 percent at 216.00 euros in technical adjustments in the approach of its expiry on Mar. 12.
* The US Department of Agriculture (USDA) will release its closely-watched global supply and demand estimates for grains and soybeans on Friday.
* The USDA forecasts will included much-awaited updates on drought hit soybean and corn crops in Argentina and Brazil which could provide market fireworks as lower South American crops may mean a major transfer of export business to the United States.
* "The market is dead," one European trader said. "Operators are waiting for the USDA report and there is no new fundamental to price, or wide move on external markets to follow."
* Wheat futures were supported by a rebound on European equity markets on Wednesday after sharp losses this week as markets braced for the outcome of the Greek debt restructuring deal.
* US wheat and corn steadied in European trade on Wednesday on bargain-hunting after a sell-off on Tuesday in cautious trade ahead of the USDA crop report, while soybeans remained at five-month highs.
GERMANY
* German wheat was little changed as Paris provided no new price impetus in cautious business ahead of the USDA crop forecasts on Friday.
* Firm feed wheat prices continued to provide background support.
* Standard quality milling wheat for March delivery in Hamburg was offered for sale unchanged at 215 euros a tonne with buyers at around 213 euros.
* "There is little action ahead of the USDA reports with mills in parts of the country apparently with good supply cover and with thin profit margins on flour discouraging purchasing," a German trader said.
* Demand from animal feed producers kept German feed wheat prices around milling wheat in parts of the country, repeating a pattern seen in past weeks.
* Feed wheat for nearby delivery in the South Oldenburg market near the Netherlands was offered for sale at 214 euros a tonne with buyers at around 212 euros.
* The unexpectedly low feed grain exports in past weeks from the Black Sea region have transferred buying interest back to EU feed wheat.
* "Cold weather and port freeze-ups continue to disrupt some Black Sea region grain exports and some people are not expecting a return to normal until the middle of March," a trader said. "This will keep short-term demand for EU feed wheat firm."
* Increasing hope German grains escaped the cold snap in late January and early February unscathed was helping to keep new crop prices below old crop. New crop wheat for September delivery in Hamburg was offered for sale around 200 euros at tonne with buyers around 198 euros.
* "The very cold weather in late January and early February may have caused some crop damage but a major problem from winterkill is not seen likely at the moment," the second German trader said.
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